“If two or more series are themselves non-stationary, but a linear combination of them is stationary, then the series are said to be co-integrated”

Pair Trading

1 November 2010

Co-integrationDrunk And Her Dog Girl wonders around a random path Xt -Xt-1 = Ut x Dog responds to the sound of her voice and adjusts its meandering according to how distant she sounds: Yt -Yt-1 = -α(Yt-1 - Xt-1) + Vt t−x

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...Running Head: THE BENEFITS OF TWISTED PAIR CABLE 1
The Benefits of Twisted Pair Cable
Michael Modesti
Instructor: Professor Lisa
CIS 175
April 28th, 2012
Strayer University
THE BENEFITS OF TWISTED PAIR CABLE 2
Abstract
This paper discusses the computing environment of NCF (Networking Consulting Firm). The firm has 20 Windows peer-to-peer client computers, and all connected via coax cabling. The president of the firm indicated that the company will doubled in size within the next two years. Therefore, changes of the computer networks as well as its cabling may be necessary to improve data transmissions, to enhance employees’ performance, as well as to keep the company on the budget. Three different kinds of cables that are discussed are: coax, twisted pairs and fiber optic.
Based on the research, twisted pair cable may be the most suitable cables for NCF, because it cost less than the coax and fiber optic, uses less material and color coded so it’s easier to install. Data transfer speed is another advantage with twisted pair cable.
Keywords: computer network, coax cable, twisted pair, fiber optic
THE BENEFITS OF TWISTED PAIR CABLE 3
The Benefits of Twisted Pair Cable
Networking Consulting Firm (NCF) has 20 Windows peer-to-peer client...

...When you work as an au pair…
…you increase you knowledge in a foreign language
…you learn more about another culture
…you experience a different environment
…you meet new people
…you get work experience
…you visit new places
…you get a memory for life
Working as an au pair is a rewarding experience because you learn to stand on your own two feet and take care of yourself.
Tasks
The most common and important task is to take care of the children in the family. It often involves making them breakfast, driving them and picking them up from school, play with them and help them with their homework.
The job also contains some housework, such as doing the dishes, the laundry and the cooking.
The tasks varies a lot from family to family, and that’s why it’s so important that the employer and employee agrees over the assignments before the au pair starts working.
Requirements
The law in Sweden says that a person that applies for an au pair employment abroad needs to fill in the following demands:
Between 18 – 28 years
(If the person is older than 28, her or she can apply for a job as a nanny)
Experience from babysitting
References from other jobs are also valuable, especially those that involves being a leader in any activity for children, like teaching a theatre group or being a swimiming teacher.
Speaking the language
Of course the person needs to speak and understand...

...Insider Trading: Should it be abolished?
Insider trading is defined as “ trading whilst in possession of non-public information and if known to the public, may lead to a substantial movement in a security’s price” . In Australia it is prohibited by insider trading regulation (IT regulations) in the Corporations Law (CL) 1991 , though it was initially established from recommendations made by the Rae committee in 1974 on the mining company scandals . The latest law changed one single section to 20 wide and complex sections, causing critique of Australia IT regulations . Henry G Manne argued that IT regulations should be abolished supported by three basic economic arguments. This essay will examine the pro and contra of each argument and shows that IT regulations have spoiled the notion of fairness at the expense of efficiency, despite the objective of any securities markets regulation to promote both aspects .
1. Insider trading could compensate corporate entrepreneurs .
Pro and Contra
This argument is supported by Carlton and Fischel who argued that the IT regulations are the same with setting government regulation of terms and conditions of employment; similar to restrict salary bonuses, stock options, vacation leave, and the others which can motivate management for their entrepreneurial skills . However their assumptions ignore the difference between the volatile share price and a certain...

...Refutation Essay
Two decades after first making its big screen appearance in 1983, Trading Places has proven to be a timeless comedy and can make even the most cynical person crack a smile. The film has all the aspects of a great film which include, award winning actors/actress, screen play, directing, and an interesting storyline. Trading Places is truly one of the greatest comedies ever produced and is sure to bring big laughs for first time viewers, but has received some mixed reviews over time. One such critic, Dennis Schwartz, states his opinion saying, “director John Landis indulgently directs this preposterous lighthearted one-joke comedy that channels the well-worn theme used by The Three Stooges and "The Prince and the Pauper" of hereditary vs. environment” (Schwartz). Dennis then goes on to say, “Though it has some comic moments, they soon give way to tedium as it loses its screwball comedy format. As a satire on capitalism or genetics, it has surprisingly little bite despite pretending to say something about the business world and the social classes. It should appeal mostly to those clinging to the simple-minded populist notion that they can skewer the elites in a general way, as it modestly scales its aspired low heights with slick but witless dialogue and fails to register any moral complexities.” Also, he gives a brief overview of the movie and cast as well as saying, “The popular film, crassly appealing to the crowd's basest...

...company learn information that will dramatically change the future. If one of these people buys or sells stock based on this information, then it creates a type of conundrum called insider trading.
Insider trading is making stock market transactions based on undisclosed, important information. This occurs when individuals buy stock to gain profits or sell stock to avoid losses when they receive confidential information. These “insiders” are usually a corporation’s’ management, owners, attorneys, accountants, etc. For example, if a management team meets privately to discuss massive layoffs that will be occurring in the next week, and then one of the managers sell its stock to avoid losses, this individual has practiced insider trading. Similarly, if a scientist of a publicly traded pharmaceutical company privately discovers the cure for Ebola, and proceeds to purchase a large amount of stock in the company before announcing the cure, that would be considered insider trading.
The idea of ethics is primarily based on two key components: fairness and transparency. First, profiting or avoiding losing money because of possessing superior knowledge is unfair in every sense of the word. The stock market is no longer on an even playing field for the shareholders (McGee, 2008). Secondly, insider trading relies on a person intentionally acting before information is made public. This is a form of hiding...

...High Frequency? Or Insider Trading?
Dow Intraday Trading May 9th 2010
High frequency trading has reached a point in which its legality needs to be called in to question. These traders hurt markets and other investors while forcing large investors to move into dark pools. High frequency traders also have an unfair advantage when it comes to trading.
The above picture shows the most infamous trading crash caused by high frequency traders known to date. The Dow Jones Industrial average fell 600 points, and then continued to rise back up to its former levels fifteen minutes later. A drop like this is a clear sign of how unstable the markets can become when high frequency traders are in the mix of the markets.
Another scary incident caused by high frequency traders was the near collapse of Knight Capital, a major brokerage firm. In a matter of minutes a high frequency trading glitch caused the firm to lose approximately 400 million dollars. The collapse of a major firm like this would be awful for the markets; it would take away liquidity and stability. High frequency traders have caused flash crashes of both markets and firms on multiple occasions; they are clearly bad for the markets.
Many large investors have also been forced to invest in what are known as dark pools. Dark pools are barely regulated, adding to the temptation of insider trading and other...

...Journal of Finance and Accountancy
Insider t nsider trading and market efficiency: Do insiders buy low and sell h high?
Stephanie Roddenberry Longwood University Dr. Frank Bacon Longwood University ABSTRACT The purpose of this study was to test the semi-strong form efficient market hypothesis strong using insider sale and purchase announcements and their effect on the risk adjusted rate of return of the firms’ stock price. Past studies using varying methodologies, including the risk adjusted model for event study methodology as used in this study, have found conflicting results have regarding the form of market efficiency upheld in the United States. By definition, a semisemi strong form efficient market would not allow any investor to earn an above normal risk adjusted return or to consistently outperform the market on the basis of publicly available information, such as an insider trade announcement. This study tests the speed of the market’s reaction to an insider trade announcement to determine if the reaction occurs either on or before the event, thus upholding the semi-strong form efficient market hypothesis. The analysis of two sample groups, strong sale and purchase insider trade announcements, was used to determine if and when the risk adjusted return of the stock price is significantly affected both on the announcement date and the during the defined event period. Results for insider sales support the semi-strong form efficient strong market...

...400 years ago that "knowledge is power,"
(Nickels &,McHugh 2011) “Insider trading is an unethical activity in which insiders use private company information to further their own fortunes or those of their families or friends”. Pg.101
Insider trading is a term that includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. Illegal insidertrading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security.
(Agnello & Donnelley 1975) Stated if every member of a community has unlimited access to the resources of the community, then the community's resources soon will be used up unless they happen to be available in infinite supply. The system of private ownership of assets, by contrast, effectively can use the price system to ration the assets in such a way as to preserve them properly and to benefit all members of the community. pg. 521
The Insider Trading Debate
Arthur Levitt stated in 1998 that more Americans were investing in the stock market than ever before and Americans had almost twice as much money invested in the stock market as in commercial banks.
The illegal version of insider trading most of us think of; is the type of insider...